Breaking News

You are here » Indian-Commodity  :  Economy  :  PSBs write off loans worth Rs 2.41 lakh crore in over 3 years

04-Apr2018

PSBs write off loans worth Rs 2.41 lakh crore in over 3 years

Public sector banks (PSBs) have written-off non-performing assets (NPAs) or bad loans worth Rs 2.41 lakh crore in over three years. Minister of State of Finance Shiv Pratap Shukla has stated that writing-off bad loans is a regular exercise carried out by banks to clean up their balance sheets and achieving taxation efficiency. As per the Reserve Bank of India (RBI) data on global operations, PSBs wrote off Rs 2,41,911 crore from financial year 2014-15 till September 2017.

Shukla pointed out that loans are written off for tax benefit and capital optimisation, while borrowers of such loans continue to be liable for repayment. He also noted that recovery of dues takes place on ongoing basis under legal mechanism, including SARFAESI Act and debt recovery tribunals. Therefore, he said that write-offs does not benefit borrowers.

Besides, according to the latest RBI data, 21 state-run banks which account for more than two-thirds of the country's banking assets had as of December 31 stressed loans of Rs 8.26 lakh crore, or 15.8 percent of their total loans.


Related News

View all news

India needs revolution in farm sector to achieve 9-10% GDP growth: Niti Aayog CEO

Niti Aayog CEO Amitabh Kant has stated that there is need to bring revolution in farm sector to attain 9-10% Gross Domestic Product (GDP) growth. He also said that there is a need to boost investment in......

ASSOCHAM pitches for growth rate of 8-8.5% per annum

In order to make India a $5 trillion economy by 2025, Industry body Associated Chambers of Commerce and Industry of India (ASSOCHAM) has come out with charter of demands and called on political parties......

PSBs likely to regain path of profitably in FY20 with expected fall in NPAs: ICRA

Rating agency ICRA in its latest report has stated that Public Sector Banks (PSBs) are likely to report net profit of Rs 23,000-37,000 crore in the next fiscal year 2019-20, after four years of consecutive......

Top News

View all news

Ladam Affordable Housing to enhance limits of Corporate Guarantee given to AU Small Finance Bank

Ladam Affordable Housing has decided to enhance the limits of Corporate Guarantee given to AU Small Finance Bank from Rs 15 crore to Rs 18.5 crore for the purpose of financing the business/ business related......

Govind Poy Oxygen planning to enter into lease agreement

Govind Poy Oxygen is planning to enter into Lease Agreement with Babaso Anandrao Budhale, for lease of land and building for the use of the company and agreement with Nasik Oxygen Company, to give machinery......

RIL's telecom arm terminates agreement with Reliance Communications

Reliance Industries' (RIL) telecom arm -- Reliance Jio Infocomm (Jio) has terminated Master Agreement and Spectrum Trading Agreement executed between the company and Reliance Communications and its affiliates......